Structured product addition from Standard Bank Offshore

Quantum PLUS 7 offers capital security and growth potential linked to the performance of a stock market index.

Standard Bank Offshore has launched its latest structured product offering, Quantum PLUS 7. The product is designed to return an investor's initial deposit, along with what Standard Bank calls a “competitive rate of interest on half the deposit, while the other half provides for exposure to stock market growth.”

Quantum PLUS 7 is open for subscription until 15 December 2011, subject to availability. The product divides each investor’s deposit equally between a 1 year (Quantum portion) fixed term deposit maturing on the 7 January 2013 and 5 year (PLUS portion) fixed term deposit maturing on 13 January 2017, and is available in £, €, AU$, or the US$ for minimum deposits of £10,000, €15,000, AU$20,000 or US$20,000.

The Quantum portion pays a rate of 4% AER for sterling, US dollar and euro or 10% AER for Australian dollar. Standard Bank confirms that this half of the deposit matures in full after one year.

Moving on to the PLUS portion, this provides for “an unlimited potential return on the other half of the deposit after five years based on the performance of a stock market index.”  Sterling deposits are linked to the FTSE 100, euro deposits to the EURO STOXX 50, Australian dollar deposits to the S&P/ASX 200 and US dollar deposits are linked either to the S&P 500 or the S&P BRIC 40. Even if markets fall, confirms Standard Bank, all the PLUS portion alternatives, except deposits linked to the S&P BRIC 40, offer the reassurance of a minimum return of 5% (0.98% AER) at maturity.

Adam Hunt, Head of Private Clients, says these structured products are typically designed for depositors who seek capital security and growth potential linked to the performance of a stock market index. “Quantum PLUS 7 has been introduced following the strong success of Quantum PLUS 6 which was sold recently. It offers returns linked to the performance of a stock market index, but without the usual risk of volatile market movements.”  

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